India Approves Rs 69,725 Crore Package To Revitalise Domestic Shipbuilding And Maritime Sector

The Union Cabinet chaired by Prime Minister Narendra Modi has approved a comprehensive package worth Rs 69,725 crore to revive and modernise India's shipbuilding ecosystem.

The initiative is structured around four pillars: enhancing domestic shipbuilding capacity, creating long-term financing channels, fostering shipyard expansion, and pushing forward reforms in policy, taxation, and skill development.

A key highlight is the extension of the Shipbuilding Financial Assistance Scheme (SBFAS) until 31 March 2036, backed by a corpus of Rs 24,736 crore.

The scheme will also feature a Shipbreaking Credit Note with an allocation of Rs 4,001 crore.

To coordinate the ambitious agenda, a National Shipbuilding Mission will be set up.

The Cabinet has also approved the creation of a Maritime Development Fund (MDF) of Rs 25,000 crore, designed to provide long-term financial support.

This includes a Maritime Investment Fund of Rs 20,000 crore, with 49 per cent government participation, and an Interest Incentivisation Fund of Rs 5,000 crore to make debt more affordable and projects more bankable.

Furthermore, the Shipbuilding Development Scheme (SbDS), with a budgetary outlay of Rs.19,989 crore, aims to expand domestic shipbuilding capacity to 4.5 million Gross Tonnage annually, support mega shipbuilding clusters, infrastructure expansion, establish the India Ship Technology Centre under the Indian Maritime University, and provide risk coverage, including insurance support for shipbuilding projects.

The government expects the overall package to unlock 4.5 million Gross Tonnage of shipbuilding capacity, generate nearly 30 lakh jobs, and attract investments of approximately Rs.4.5 lakh crore into India’s maritime sector.

The initiative is expected to not only accelerate growth but also strengthen national, energy, and food security by bringing resilience to critical supply chains and maritime routes.

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